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FAIR TRADE FACT SHEET
According to the International Federation for Alternative Trade, Fair
Trade is an alternative approach to conventional international trade by
developing trading partnerships aimed at sustainable development for
marginalized and disadvantaged producers through better trading and more
just trading conditions. The key principles of Fair Trade:
1. Creating opportunities for economically disadvantaged producers
Fair Trade is a strategy for poverty alleviation and sustainable
development whereby trade us undertaken with a concern for the social,
economic and environmental well-being of producers in developing countries
who are marginalized and exploited by conventional trading systems,
specifically, equitable commercial terms, fair wages and fair prices in
the interest of the producers and not solely to maximize profit at
producer’s expense.
2. Transparency and accountability
Fair Trade involves transparent management and commercial relations to
deal fairly and respectfully with trading partners.
3. Capacity building and Advocacy
Fair Trade is a means to develop producers’ independence through
relationships that provide continuity allowing producers and their
marketing organizations to improve management skills and access to new
markets. Fair Trade also means encouraging people to change consumption
patterns based on issues of social justice, the goal being to increase
public consciousness of unfair trade structures while viewing alternative
trade as an effective method of eradicating poverty while promoting
intercultural understanding and respect.
4. Payment of a fair price
A fair price in the regional or local context is one that has been agreed
through dialogue and participation to ensure not only costs of production
but enables socially just and environmentally sound production. It
provides fair pay to producers and embodies principles of equal pay for
equal work. Fair Traders ensure prompt payment to their partners and,
whenever possible, help producers with access to pre-harvest or
pre-production financing.
5. Equal Employment Opportunity
Fair trade opposes discrimination and works to ensure equality of
employment opportunities for both men and women who suffer from the
exploitation of their labor and the effects of poverty and racial,
cultural or gender bias. Fair Trade supports gender equity in which
women’s work is properly valued and rewarded and women are empowered in
their organizations.
6. Working conditions
Fair Trade means a safe and healthy working environment for producers. The
participation of children (if any) should not adversely affect their
well-being, security, educational requirements and need for play and
conforms to the UN Convention on the Rights of the Child as well as the
law and norms in the local context.
7. The environment
Fair Trade actively encourages better environmental practices and the
application of responsible
methods of managing resources, sustainability and production.
8. Concern for People and Respect for Cultural Identity
Fair Trade promotes development which improves and sustains the quality of
life while upholding cultural diversity through just labor and production
practices that are sustainable for and responsible to both people and the
natural world. Trading activities should not violate indigenous peoples’
claims on land or resources important to their way of life. The
development of products based on producer’s cultural traditions and
natural resources should be encouraged to promote producer’s artistic,
technological and organizational knowledge as a method of preserving and
developing cultural identity.
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